MASTERPLAST.BD WACC - Weighted Average Cost of Capital

The WACC of Masterplast Nyrt (MASTERPLAST.BD) is 13.2%.

The Cost of Equity of Masterplast Nyrt (MASTERPLAST.BD) is 17.50%.

The Cost of Debt of Masterplast Nyrt (MASTERPLAST.BD) is 5.50%.

	Range	Selected
Cost of equity	15.80% - 19.20%	17.50%
Tax rate	11.60% - 12.80%	12.20%
Cost of debt	4.00% - 7.00%	5.50%
WACC	11.6% - 14.7%	13.2%

WACC

MASTERPLAST.BD WACC calculation

Category	Low	High

Long-term bond rate	6.4%	6.9%
Equity market risk premium	7.9%	8.9%
Adjusted beta	1.19	1.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.80%	19.20%

Tax rate	11.60%	12.80%
Debt/Equity ratio	0.52	0.52
Cost of debt	4.00%	7.00%

After-tax WACC	11.6%	14.7%


Selected WACC	13.2%

MASTERPLAST.BD's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for MASTERPLAST.BD:

cost_of_equity (17.50%) = risk_free_rate (6.65%) + equity_risk_premium (8.40%) * adjusted_beta (1.19) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.